Analysts and experts expect the Federal Reserve to keep interest rates at their record, near-zero low level after a meeting today, says Forbes.com. Even though the Federal Open Market Committee has been meeting for two days against a turbulent and troubled economic landscape, no one expects much more than a “stay the course” message from their announcement.
U.S. stock index futures fell sharply after early positive movement this morning as traders and investors saw nothing but bad news from the housing markets. Sharp declines in new and existing-home sales proved fairly conclusively that a federal tax credit was sustaining the real estate market, which is faltering now that it has been removed.
Jobs are shaky as well, with only 41,000 private sector jobs created in May. The vast majority of new hires were temporary workers for the U.S. census.
It’s likely that any news, on inflation or jobs, will be bad news for markets. It’s reasonable to expect further declines in US stock index futures if the Fed says anything out of the ordinary.
The FOMC will issue a statement about its decision on interest rates at 2:15pm EST. The current target federal funds rate determined by the FOMC is one quarter of one percent.
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